Will Filecoin Price Hold $3 Support Ahead of the Waffle Upgrade?

Highlights

Filecoin is poised to boost its network capabilities with the latest 'Waffle' upgrade, scheduled to launch on the Mainnet tomorrow, August 6.
The FIL price retested the $3 support level, triggering a 175% rally in Q4 2023.
The 50-day EMA has consistently served as a barrier for against FIL buyers since April 2024

Filecoin price fell 7% to $3.2 on Monday amid the broader market correction. Over the past 24 hours, the cryptocurrency market has seen total liquidations of approximately $1.23 billion, according to coin glass data. Although supply pressure slightly eased during U.S. market trading hours, the bearish sentiment persisted for most major coins.

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Filecoin to Enhance Network Capabilities with NV23

Filecoin is on track to uplift network capabilities with network version 23, known as Waffle — scheduled to hit Mainnet on August 6, 2024. This upgrade will introduce some key features to help improve performance and expand functionalities.

As per a blog post shared on Waffle upgrade, one of the major highlights of NV23 is the soft launch of Fast Finality under FIP-00086, which starts the passive testing of F3 on the mainnet, laying the groundwork for potential future updates like NV24

Furthermore, NV23 is going to add support for legacy Ethereum transactions—like Homestead and EIP-155—with FIP-0091. The integration will make the network compatible with tools and wallets supporting Ethereum and enable easier onboarding for Ethereum users by bridging across the blockchain space.

Moreover, this Waffle upgrade will bring about a Non-Interactive Proof of Replication, as specified in FIP-0092. This helps the sealing activities be separated from the storage tasks and run independently to reduce operation costs and gives the storage providers more control over scheduling their sectors for window post deadlines.

Overall, the NV23 update represents Filecoin’s ongoing commitment to innovation and efficiency, aiming to improve its blockchain solutions’ utility and connectivity.

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Filecoin Price Plunged to Oversold Region

Filecoin price in the daily chart shows a 10-day loss streak which plunged its value from $4.44 to $3.3— a 29% decrease. Amid the market sell-off today, the FIL retested the $3 support level that bolstered buyers for a 175% rally in Quarter 4 of 2023.

The long-wick region candle at the aforementioned support reflects the demand pressure intact for this altcoin at a discounted price. The upcoming waffle upgrade may spark a sudden uptick for FIL to sustain above $3, but the true growth behind this development will happen over time.

The Relative Strength Index (RSI) dropped to the oversold region, highlighting an overextended downfall that should soon witness a relief rally. A potential rebound could push the asset 46% to challenge the resistance at $4.8.

On the contrary, Filecoin price has witnessed dynamic resistance from the 50-day Exponential Moving Average (EMA) slope, which could renew supply pressure. A failed rebound could accelerate the market correction and breach $3 support. The post-breakdown fall may push FIL price 26% to test the December 2022 low at $2.4.

Frequently Asked Questions (FAQs)

1. Which key support levels for Filecoin?

The filecoin price in daily chart shows $3 and $2.4 as key support, while $4 and $4.8 as immediate resistance.

2. What does it mean when an asset is in the oversold region?

When an asset is in the oversold region, it means that it has been sold off excessively, usually indicated by the RSI falling below 30.

3. Can FIL price holds $3?

The $3 support coinciding with a long-term ascending trendline creates a high demand zone, that may hold amid current market correction

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Sahil Mahadik

Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading

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